ABSTRACT
Charging market prices for curb parking is not only sound transportation policy, but also sound fiscal policy. Parking requirements differ from property taxes in that they are not related to the value of buildings, so they do not discourage investment in the quality and durability of buildings. Both property taxes and parking requirements place a burden on buildings, but property taxes at least provide public revenue. Taking all curb parking revenue for the general fund is, from the neighborhood's point of view, a 100 percent tax rate that removes the incentive for residents to support charging for curb parking, so it yields almost no revenue. Free curb parking creates a classic commons problem, with many resulting pathologies. When businesses provide on-site parking rather than pay the in-lieu fee, they do get the benefit of the parking spaces. The ability of curb parking to produce public revenue can therefore be seen only in cities that have never required off-street parking.
